HOUSE PASSES BILL EXTENDING CEBU PACIFIC’S FRANCHISE BY 50 YEARS

​MANILA, Philippines — The House of Representatives passed on second reading a legislative measure extending the operating franchise of Cebu Air, Inc., widely known as Cebu Pacific, for an additional 50 years.

​House Bill No. 11536 secured penultimate approval on Monday, October 5, following a voice vote presided over by House Deputy Speaker and Iloilo 4th District Representative Ferjenel Biron. The measure consolidates HB Nos. 6350, 6422, and 9370, granting the budget carrier a renewed 50-year term upon the expiration of its current franchise under Republic Act No. 7151.

​Albay 3rd District Representative Adrian Salceda, author of HB No. 9370, emphasized the critical necessity of air transport for an island nation, noting that regional connectivity directly impacts economic growth and travel accessibility.

​“For an archipelagic country like the Philippines, connectivity is economic infrastructure. Kapag mahal o mahirap bumiyahe mula probinsya patungo sa mga sentro ng ekonomiya, hindi lamang pasahero ang naaapektuhan. Tumataas din ang cost of doing business, lumiliit ang access sa turismo at merkado, at nababawasan ang oportunidad sa mga rehiyon,” Salceda stated.

​“Kami po sa Albay, we have Cebu Pacific as our most important air carrier. And air connectivity is crucial for us given how difficult the road conditions are in Maharlika Highway,” he added.

​Salceda further highlighted that regional subsidiary Cebgo remains vital for servicing secondary routes and remote island areas with smaller aircraft, linking provincial economies to major commercial hubs. However, he stressed that the extension requires strict adherence to regulatory oversight.

​“A franchise is a public trust. 50 years of regulatory certainty must come with 50 years of public accountability,” Salceda said.

​Under HB 11536, Cebu Pacific is required to maintain both scheduled and non-scheduled domestic and international flights while adhering to safety, technical, and rate standards established by the Civil Aeronautics Board (CAB) and the Civil Aviation Authority of the Philippines (CAAP).

The bill grants the airline permission to utilize state-owned airport facilities, subject to national security protocols, while extending reciprocal access to the government.

Additionally, the measure allows the President of the Philippines to temporarily assume control of the carrier’s operations during national emergencies, war, or disasters, provided fair compensation is given, and holds the airline liable for any operational damages or injuries.

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